When is the existing duty extinguished under accord and satisfaction?

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Multiple Choice

When is the existing duty extinguished under accord and satisfaction?

Explanation:
Under accord and satisfaction, the old obligation is discharged only when the substituted promise is performed and accepted as full settlement. Signing the agreement does not extinguish the duty by itself; it ends only when the debtor actually completes the promised alternative and the creditor accepts it as complete satisfaction. Therefore, the existing duty is extinguished when the accord is satisfied.

Under accord and satisfaction, the old obligation is discharged only when the substituted promise is performed and accepted as full settlement. Signing the agreement does not extinguish the duty by itself; it ends only when the debtor actually completes the promised alternative and the creditor accepts it as complete satisfaction. Therefore, the existing duty is extinguished when the accord is satisfied.

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